All Forum Posts by: Cameron Tope

Hello BiggerPockets community,

My wife and I purchased a house in Katy, TX a few years ago for $230k, right before the market surged. We secured a 3.2% interest rate and currently owe about $200k. The house is now worth approximately $315k.

Initially, we thought we'd stay here long-term, but we ended up with a larger house than we need. We've decided we want to move further out and get a few acres. Additionally, my commute is 25 miles each way.

Here's our plan:

1. **Lease our current house**: We believe leasing our house could be a good idea.

2. **Buy a mobile home**: We plan to buy a mobile home and place it on a leased lot 13 minutes from my office.

3. **Save money**: With reduced expenses (gas, power, tolls, etc.), we estimate that we will be about to increase our savings from about $600 per month to about $2,000 per month.

4. **Future plans**: After a few years, we aim to put a down payment on a piece of land and move the mobile home there.

Our goals are to build equity in our current house while working towards owning a nice piece of land and maybe eventually building a nice house on it.

**Questions:**

- I have no idea if my calculations on what the my costs for leasing the house are anywhere near accurate. My current payment with taxes and insurance is $1613/month(this is with pmi of $85/month. I just submitted a request to remove it). I'm seeing similarly sized homes leasing in my area for $2300/month. How big of an impact is losing the homestead exemption?

- How should I start with this? What do I need to learn? Are there any books I need to read?

- How do I find a tenant and manage a lease?

I'm not sure if this plan sounds crazy but my wife is on board and I think it's probably a good path to getting us where we want to be. I'm also not afraid of a little hard work but I'm feeling a bit overwhelmed and would appreciate any advice or guidance on where to start and what to focus on.

Thank you!

 I've used the brick and mortar PM's (Evernest) with mixed luck. I saw a few people on BP that were using the "mom n pop" and recommended her. Just trying to find an honest service for an honest dollar. 

Hi everyone,

I am looking to purchase something fairly soon.  I have a down payment of approximately $100k.  I am looking for a very good deal in a good location.  I prefer not to deal with areas that have harsh winters.  Can someone please recommend some good markets to look in where I can get the most for money and where the investment would be relatively safe?  I want a property that is in somewhat good repair that only needs a bit of a face lift (on a scale of 1-100, I want a property that is above 75).  I am located in California and definitely do not want to invest here due to the overly tenant friendly laws.  Would prefer somewhere with landlord friendly laws.

Thank you in advance!

Ed 

@Nikky Jarvis you can find some posts about Mynd here via search. 

They had some problems in the past, but many of their offices seemed to have improved.

Still, recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder, etc.

Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Why did you choose this mom-and-pop manager? Is it because they were cheaper? You thought they would have more time to focus on your property and treat it like it was their own?

Cheaper doesn't mean better. I recommend you look for a professional manager who knows what they are doing.

Good on you for checking on their work and catching this problem. It's important to supervise your manager, at least for a while, to ensure their words back up their actions.